India’s textile ministry recently announced a special one-time additional ad hoc incentive of up to 1 per cent of free on board (FoB) value for exports of apparel and made-ups.

The incentive will offset the difference between the new rebate on state and central taxes and levies (RoSTCL) and the previous rebate on state levies (RoSL) and the Merchandise Exports from India Scheme (MEIS).

The decision followed a recommendation of the expenditure finance committee.

Effective retrospectively, exporters of apparels and made-ups will be able to avail incentives up to 1 per cent of the FoB value for each line in a shipping bill for those exports that have received lesser benefits under the RoSCTL as against the RoSL and MEIS, according to a ministry notification.

The period for which exporters can make claims for the incentive is from March 7, 2019, to December 31, 2019, with the amount capped at ₹600 crore. While the notification has specified that claims are applicable for those exports that received MEIS at 4 per cent, the RoSL provides for rebates between 1.2 per cent and 3.9 per cent for the exports in question, a top business daily reported.

Published On : 17-01-2020

Source : Times of India